1.Identify whether the following items are officially included in 2019 GDP or Not. Give specific reasons if they are not included in GDP.

a. You purchased a home in 2019 that was built in 2015.

b. Firestone sells $2 million worth of tires to General Motors.

c. John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes.

d. The value of Treasury notes sold by the federal government in 2019.

e. The profit earned in 2019 from selling a stock that you purchased in 2010.

f. The value of a motor that is used in the production of a lawnmower in 2019.

g. The value of a motorcycle produced in the United States in 2019 and exported to Japan.

h. The value of a laser printer manufactured in 2019 but not sold in 2019.

2.Define Gross Domestic Product and Gross National Product (GNP). Explain the difference between Gross Domestic Product and Gross National Product.

3.Identify whether the following items are officially included in United States GDP or GNP.

a. The wage of a Mexican citizen who works on a farm in Texas in the United States.

b. The profit earned by a Brazilian Citizen who works in the New York stock exchange in New York.

c. The income earned by an American professor delivering a series of lectures in London.

d. The value of Espresso coffee Star Bucks produces in France.

4.Why do we subtract import spending from total expenditures while calculating the GDP?

5.Suppose that a simple economy produces only three goods and services: sweatshirts, dental examinations, coffee drinks. Using the information in the table below, calculate the nominal GDP for this simple economy